Sony loses $1 billion: No PlayStation 3 price cut at E3?

As prospective but penny wise gaming consumers look to the horizon and June's eagerly anticipated E3 Expo looms large, many with designs on a PlayStation 3 purchase may well be hoping Sony will mark the event by lopping a sizable chunk off its powerhouse console's lofty retail price. Don't hold your breath..

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Gamertags5245d ago

Sony is certainly feeling the heat with the economy and competition.

irish-leprecaun5245d ago

then drop by 100 and watch sony dominate xmas!!

DasBunker5245d ago

they didnt lose money just in the gaming division, misleading title.. as long as they keep pumping out awesome first party games im happy..cuz im a gamer

GWAVE5245d ago

I want Sony to do a price drop.

No, not because I need to buy a PS3 (already own one), but because I think it will be funny to see what the fanboys come up with next when their tired argument of "teh sales! teh sales!" finally withers and dies.

beardpapa5245d ago

^^ Price drop on current design and $399 on PS3 slim (if real) maybe ?

All these pictures of the "PS3 slim" legit or not coupled with Dell throwing out ~$300 PS3 deals for these past two months - kinda like its hinting something.

Naucious5245d ago

honestly it doesnt sound good but in all aspects sony is a big company and the title is misleading cuz their actually up this year but gaming industry went down, but all in all i guess im the only one that feels that they dont need a price drop, Sony is great as it is in my opinion i guess its for the people that are worried about sales....

lol i saw this article earlier and i just knew it was going to be posted with a misleading concept of an article lol journalist go figure lol

RememberThe3575245d ago

Just looking at the gaming aspect of their business, they need to increase sales. If they aren't continuously expanding their install base, they will start to loss support.

From a gamers perspective, loosing support means loosing multi-platform games and possible exclusives. I know I might sound a bit boom-and-gloomy, but the risk should be taken seriously. Look at all the people who are still pissed about the Dreamcast.

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lokiroo4205245d ago

RROD losses = 1 billion, did it stop them?

cranium5245d ago

Original xbox losses= $4 billion

It's MS, they don't care if they lose money or not, they just want market share.

no-spin5245d ago

MS business practice is what one calls unorthodox.

Red ink makes no difference for them, they will make up for it somewhere else (like the Gold membership)

Sony will Not allow a price cut under these conditions, no way and less with all the games, online services for free, now is the time to truly have a good $400 tag.

RememberThe3575245d ago (Edited 5245d ago )

PS3 game sales went up substantially in 2008 so they might be able to make up the difference in software sales, if that trend continues. And with the added focus on the PSP they might be able to increase sale on that front as well.

But there are many more economic factors that are a play here then we could touch on in a gaming forum.

And basically they are going to have to make some changes if they want to stay competitive in the video game market.

soxfan20055245d ago


How is it "unorthodox" for a company to offset losses on some products by profiting on others? Sony loses money on PS3, and they make it up (although not completely, obviously) on other products, same as MS.

RememberThe3575245d ago

Offsetting losses isn't unorthodox at all but what he is talking about is the way they achieve that offset.

no-spin5245d ago (Edited 5245d ago )

Because they simply dont care to see red ink

The live membership is abusive, and PC gamers know that charging for online play is outrageous.

Unorthodox to rush a 33% failure rate console and then spending $ 1 billion in warranty. Price cut after price cut even if that means bigger losses for each unit sold. If MS did not have its huge monopoly (like making deals with intel so that the processor does not run linux; pathetic) and had to compete fair and square, they would go bankrupt in less than a year. MS business approach is like watching a donkey on skates.

dcbronco5245d ago

The difference is that MS makes 14-17 billion in profits every year. They also have 0 debt. And over 30 billion sitting around in a drawer. The two companies are on the opposite end of the financing stick. Sony has far more debt than cash on hand so they couldn't afford this. They thought it would be worst so Stringer is doing something right though.
But the headline is dead on. They can't afford a price cut unless they have a major cost reduction coming to the PS3. At least $150 worth of savings and it would take a die shrink on the CPU and GPU and reductions in parts cost to come close to that.

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Mu5afir5245d ago

They lost total of 1 billion of potential profit, that they thought they would make. Sony didn't lose money, they didn't make the money they promised their shareholders. People who don't know how stock works, shouldn't be making up news.

ravinash5245d ago

Most of the losses were probably from the strong Yen and the drop in electronics sales. In the current climate I'd say that's to be expected.

ravinash5245d ago

Yeah, right up there with RROD.

ravinash5245d ago

Hay hay!!! I wondered where you got to?

TheBand1t5245d ago

Kinda like the 4 billion on the first Xbox and the 1 billion for RRoD warranties.

Try again, nubbar.

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TheColbertinator5245d ago

Looks like the giants of the past(Sony,EA,Square Enix) are burning cash amazingly fast.Serves them right for their arrogance and laziness

swiftshot935245d ago

No way in hell EA and Sony are lazy. They've pumped out amazing games this generation. Sony's arrogance is a thing of the past, and I don't see how EA is ever arrogant. They definitely don't deserve to be loosing money.

Are you still look forward to Mass Effect 2 and Uncharted 2?